All Forum Posts by: Tony S.

Background:  Trying to acquire my first apartment building.  Found a very great value-add opportunity in the Southeast while driving for dollars on my motorcycle two weekends ago.  Apartment is a 50-unit building, owned by the same owner since 1993.  Owner is 75 years old.  Lots of deferred maintenance, parking lot needs to be resurfaced, pool not clean, siding needs to be updated, etc., all of which seem cosmetic and manageable. 

I've tried calling the resident manager on 4 occasions, to no avail.  So it seems like the apartment is undermanaged, leading me to believe rents are most likely under-market.  This building is in an emerging market, so the upside potential in rehabbing, raising rents and reducing expenses seems promising.  My strategy is to purchase, rehab, stabilize over two years, and sell at a higher price.  Hoping to finance the down payment through owner finance or syndication.  I already have the funds for the rehab.

My next challenge is to approach the owner.  I've tried calling all the numbers I've found through my research, but have not been able to connect.  Through tax records, I've found the owner's address and plan to knock on his door this Saturday.  Does anyone have any tips on what angle I should approach the owner of the apartment building?  Should I approach from the angle of "I want to get into apartment investing and would like to talk about your experience in owning apartments" or "I want to buy this apartment from you, here's what I can offer".

With the former approach, I feel like it's less direct and builds a relationship before ultimately getting to the point (buying the apartment building).  With the latter approach, I feel like I get straight to the point and cuts through the BS.

Anyone have anecdotes or experience they want to share with similar situations? 

What is the rental market in Winston-Salem, NC like?    

I see a lot of 2 beds/1 baths for sale in Winston-Salem at a price that would be killer deals here in the Charlotte greater areas, so I'm trying to figure out what's going on in Winston-Salem since it's only 1.5 hours away from Charlotte, NC.  Are there no investors competing for homes there?  Or is the rental market over-saturated such that the lack of demand for rentals commands a lower purchase price?  

Would appreciate any responses from anyone with rentals in Winston-Salem.  Thanks,

Anatoly 

What are current rents on a 2 bed/1 bath renovated apartment home in Winston-Salem?  I'm curious why rents are so low compared to surrounding cities (Charlotte and surrounding metropolitan area, Raleigh and surrounding metropolitan area, etc.).  Would be interested to start investing in Winston-Salem if the right opportunity comes along.

Is that $6/square foot?

 I'd be interested in connecting when you're in town.  I only have a couple of rentals in the Charlotte greater area (Gastonia, Kannapolis, etc.), but I've got local connections and would want to hear about your MF deal in Gastonia. 

Thanks for the info, Stephen! The target property I'm looking at is unfortunately in 28025 area near downtown concord, should I avoid?  Would love to connect, I'll be in the area Saturday if anything.

Thanks, Chris! Do you have any rentals in Kannapolis? I just bought a 2 bed/1 bath on S. Harding Ave (less than a mile from the redevelopment) that I'm planning to put on the rental market next month. Do you think I'll be able to get $650/month for it with central a/c, new paint everywhere, refinished floor, pressure washed house, etc.? Would love to connect.

Any investors currently owning rental in Concord, NC?  If so, what are you typically getting for rent for a 1 bed/1 bath or 2 bed/1 bath?  How long does it typically take to put a tenant into the property?  Is there a high vacancy rate?

I have a rental in Gastonia and one in Kannapolis, but any reference points for Concord would be greatly appreciated as I am thinking of branching out into that market. Thanks!

I'm finding success buying, rehabbing, refinancing and renting out homes in the $35K range.  I'm currently working on my second investment property, but am dissatisfied at the pace I'm going. 

My current rate of acquiring 2 rentals/year is falling short of my 6 rentals/year goal.  The deals are out there for my niche market, but shortfalls in funding is slowing me down.  

Has anyone in a similar situation successfully jump-started their expansion?  If so, I would like to hear from you on creative strategies or ideas to help expand the volume of rental acquisitions.

 Can you PM his contact info?